Assistant Commissioner of Income-tax, Circle - 7, Pune V. Saarloha Advanced Materials P Ltd., , Pune

MA 195/PUN/2022

AI Insights

The case involves the Assistant Commissioner of Income Tax, Circle \\u2013 7, Pune as the appellant and Saarloha Advanced Materials Pvt. Ltd. as the respondent. The dispute centered on the claim of education cess as a deduction for the assessment year 2014-15. Initially, the Tribunal's order dated 08-09-2021 in ITA No. 46/PUN/2018 allowed the deduction. However, following the retrospective amendment by the Finance Act, 2022, which clarified that tax includes any surcharge or cess, the Revenue filed a Miscellaneous Application to recall the order. The Tribunal, upon reviewing the amendment, found a mistake apparent on record and recalled the earlier order, dismissing the additional ground that allowed the deduction of education cess.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132867 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-03-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 02-03-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 04-11-2022
• Laws Referred To: Finance Act, 2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Retrospective amendment

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER धिधिि आिेदन सं. / MA No.195/PUN/2022 (Arising out of ITA No. 46/PUN/2018) धनिाारण िर्ा / Assessment Year : 2014-15 Assistant Commissioner of Income Tax, Circle – 7, Pune .......अपीलाथी / Appellant बनाम / V/s. Saarloha Advanced Materials Pvt. Ltd., (Previously known as Kalyani Carpenter Special Steels Pvt. Ltd.), Mundhwa, Pune – 411036 PAN : AABCK1779L ......प्रत्यथी / Respondent Assessee by : Shri Nikhil S. Pathak Revenue by : Shri Ramnath P. Murkunde सुनवाई की तारीख / Date of Hearing : 03-03-2023 घोषणा की तारीख / Date of Pronouncement : 08-03-2023 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : By way of this Miscellaneous Application, the Revenue seeks to recall the order dated 08-09-2021 passed by this Tribunal in ITA No. 46/PUN/2018 for assessment year 2014-15 in respect of additional ground. 2. Heard both the parties and perused the material available on record. We note that the Explanation 3 was inserted by the Finance Act, 2022 with retrospective effect from 01-04-2005, wherein, it is clarified the term “tax shall 2 MA No. 195/PUN/2022, A.Y. 2014-15 include and shall be deemed to have always included any surcharge or cess, by whatever claim called, on such taxes”. Therefore, in view of the said insertion with retrospective effect, the assessee is not entitled to claim education cess paid by the assessee as deduction. Thus, there is a mistake apparent on record in the order dated 08-09-2021 passed in ITA No. 46/PUN/2018 for A.Y. 2014-15therefore, the same is recalled by holding that the assessee is not entitled to claim education cess as deduction, resultantly, the additional grounds stands dismissed. Thus, order dated 08-9-2021 in ITA No. 46/PUN/2018 for A.Y. 2014-15 is modified and hereafter, Additional grounds shall be read as dismissed. 3. In the result, the Miscellaneous Application filed by the Revenue is allowed. Order pronounced in the open court on 08 th March, 2023. Sd sd/- - Sd/- (Inturi Rama Rao) (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ददनाांक / Dated : 08 th March, 2023. रदव/Ankam आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT(A)-7, Pune 4. The Pr. CIT-6, Pune 5. दवभागीय प्रदतदनदध, आयकर अपीलीय अदधकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आदेशानुसार / BY ORDER, /// TRUE COPY /// वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदधकरण ,पुणे / ITAT, Pune